Supply And Demand Essay - 1003 Words

Recent medical advances have greatly enhanced the ability to successfully transplant organs and tissue. Forty-five years ago the first successful kidney transplant was performed in the United States, followed twenty years later by the first heart transplant. Statistics from the United Network for Organ Sharing (ONOS) indicate that in 1998 a total of 20,961 transplants were performed in the United States. Although the number of transplants has risen sharply in recent years, the demand for organs far outweighs the supply. To date, more than 65,000 people are on the national organ transplant waiting list and about 4,000 of them will die this year- about 11 every day- while waiting for a chance to extend their life through organ donation†¦show more content†¦The converse of a complementary good is a substitute good. In the organ market, a substitute good really depends on what organ is being considered. â€Å"People with diseased livers [are] particularly at risk because there is no medical alternative to transplantation for keeping a patient†¦alive.† The only two obvious substitute goods for a liver transplant would be extensive medical care and pain medications. On the other hand, someone with diseased kidneys has more options. One obvious option would be dialysis. But, when looked at as a whole, the organ market does have substitute goods. If the â€Å"price† of organs increases (whether due to an increase in demand or decrease in supply) the demand for the substitute good will increase. Since the National Organ Transplant Act of 1984 prevents a monetary price from being placed on a donated organ, effective allocation mechanisms must be utilized. Allocation mechanisms must be accessed because the shortage of supply compared to the demand. In any market, allocation mechanisms rely on many factors but some include friendships, â€Å"under the table† payments, predicted profit, and personal biases. In the organ market, several allocation mechanisms come to mind. There is always the possibility that a particular patient has a family member or friend that is in the organ transplantation profession,Show MoreRelatedSupply And Demand Of Demand1442 Words   |  6 Pages Supply and Demand Kimberly Jo DeVoy Western Governor’s University â€Æ' Supply and Demand A. Elasticity of demand represented as â€Å"Ed† is defined as a â€Å"measure of the response of a consumer to a change in price on the quantity demanded of a good† (McConnell, 2012). 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It is by this â€Å"invisible hand† that our economy today works, and it can be used to make sense of how the laws of supply and demand work together to guide markets such as that of ice cream. The law of supply states that a riseRead MoreSupply and Demand1107 Words   |  5 Pagesï » ¿Supply and Demand Factors Understanding supply and demand is the underlying foundation of all economics. The term demand is used to indicate consumers’ willingness to buy while supply indicates willingness to sell. The relationship between demand and price is reflected by quantity demanded, meaning that at a certain price with everything else held constant, this is the amount people are willing to buy. The same applies for supply for quantity supplied, at a given price with all else constant thisRead MoreSupply and Demand1181 Words   |  5 PagesNone of the above. Answer: C 4) Suppose the demand for Digital Video Recorders (DVRs) is given by Q=250 - .25p + 4pc, where Q is the quantity of DVRs demanded (in 1000s), p is the price of a DVR, and pc is the price of cable television. How much does demand for DVRs change if the p rises by $40? A) drops by 10,000 DVRs B) increases by 16,000 DVRs C) drops by 2,500 DVRs D) increases by 4,000 DVRs Answer: A 5) Consider the demand function Qd = 150 - 2P. The effects of other determinants